HUD, FHA, Fannie Mae and Freddie Mac are ready and willing to help all homeowners and homebuyersEven though the credit markets have been frozen, homebuyers can rest assured that the FHA, Fannie Mae and Freddie Mac are still open for business during the credit squeeze.  In fact, FHA’s volume has tripled.  They are even insuring over 100,000 new loans a month.  According to a spokesperson with HUD, FHA, Fannie Mae and Freddie Mac have kept liquidity up for new homebuyers and have virtually unlimited funds for new mortgages.  Combined, these three entities control 90% of US mortgages.  The credit crunch will not affect homebuyers with at least a 3% down payment, a documentable employment record and moderately good credit rating.  While business and commercial loans have been a bit harder to come by in the last few weeks, qualified homebuyers looking to purchase or refinance mortgages haven’t had that trouble.

HUD’s Financial Stability Oversight Board’s primary responsibility over the next several weeks will be to refinance or help work out delinquent subprime homes financed by private lenders during the previous boom years.  Their Hope for Homeowners program is set up to cut the principal and monthly payments and interest rates of delinquent loans through refinancing into fixed rate FHA mortgages.

The government has also infused HUD with $3.9 billion to create a Neighborhood Stabilization program.  This program allows HUD to provide funds to local governments to buy, fix up or rent out foreclosed homes in an effort to ease neighborhoods where the high volume of foreclosed homes has brought a decrease in home values.  The Neighborhood Stabilization program offers local governments the ability to play a role in fighting the sluggish housing market and provides an opportunity for real estate agents, builders and investors to profit in the turnaround efforts.  For those interested in the Neighborhood Stabilization program, speak with your local city or county housing officials for more information.

FHA Offers More

July 25, 2008

FHA is offering help to more at-risk homeowners. Homeowners who are experiencing difficulty in making their mortgage payments due to adjustments in their interest rates may be able to refinance their home through FHA’s refinance program: FHASecure.
Although, the program was established a year ago, it seems that many homeowners are not aware that they may be able to refinance their home and avoid foreclosure.
FHA has temporarily increased its loan limits, which will allow the FHASecure program to help more families keep their homes. Due to the increase in the loan limits, you may still be able to qualify even if  your property has depreciated in value. The increased loan limit is  currently scheduled to end on December 31, 2008.
Homeowners at risk of defaulting on their mortgage payments (or currently in default), but have otherwise maintained a good credit history, may qualify for the FHASecure refinance program.
Contact an FHA approved lender as soon as possible to make an appointment to discuss your particular circumstances.

FHASecure Facts

FHASecure Questions and Answers

Related article: Homeowners Get Help for Mortgages at Risk